Data from Binance Bitcoin indicates that the 30-day average return is around 0.00164, a relatively low level that suggests a slowdown in upward momentum compared to previous periods. Conversely, volatility stands at approximately 0.018, reflecting continued uncertainty and high price sensitivity to short-term movements.
The Sharpe-like Ratio, at approximately 0.091, remains in positive territory but is close to zero, indicating that current returns still exceed risk, albeit by a narrow margin. Historically, such values indicate transitional phases in the market cycle, where the uptrend is not strong enough to justify higher risk, while the market is not yet in a state of sharp decline.
From a cyclical perspective, the data shows that the indicator tends to register elevated values during the early stages of an uptrend, when returns are strong and volatility remains relatively low. As the market approaches saturation or distribution phases, the indicator gradually declines, even as prices continue to reach higher highs, reflecting a deterioration in risk-reward efficiency.
Based on current values, the market can be considered to be in a cautious equilibrium phase, where positive trends remain intact but require stronger support either through higher returns or reduced volatility—to regain healthy upward momentum. Therefore, continued monitoring of this indicator remains an important tool for assessing whether Bitcoin’s upcoming price movements are driven by sustained momentum or rising risks.
Written by Arab Chain
